Economy Expands by 2.7% But Recovery Is Still Weak

By

Eric Morath And

Sarah Portlock

Nov. 29, 2012 9:27 p.m. ET

WASHINGTON—The U.S. economy expanded at its fastest pace since late 2011, but those gains could be reversed as superstorm Sandy and the fiscal cliff create a drag during the final three months of 2012.

The nation's gross domestic product—the broadest measure of goods and services produced in the U.S.—advanced at an annual rate of 2.7% between July through September, the Commerce Department said Thursday. The revised figure is up...